Pass-Through Charges: Palo Alto vs San Jose
How do pass-through charges rules compare between Palo Alto, CA and San Jose, CA?
Palo Alto has fewer restrictions than San Jose.
Palo Alto, CA
Santa Clara County
Santa Clara County has no countywide rent stabilization, so pass-through charges in unincorporated areas follow state law. AB-1482 caps annual rent increases at 5% plus CPI, capped at 10%, including any operating cost passthroughs.
View full Palo Alto rules →San Jose, CA
Santa Clara County
Under the San Jose Apartment Rent Ordinance, landlords of pre-1979 apartments may pass through certain capital improvement, debt service, and utility costs only with Housing Department approval. Add-ons must be itemized and sunset when costs fully amortize.
View full San Jose rules →Key Facts Comparison
| Fact | Palo Alto | San Jose |
|---|---|---|
| State law | Cal. Civ. Code §1947.12 | - |
| Annual cap | 5% + CPI, max 10% | - |
| County code | No SCC unincorporated rule | - |
| Stronger cities | San Jose; Mountain View; Los Gatos | - |
| Tenant remedy | Excess rent recoverable | - |
| Code | - | SJMC Chapter 17.23 (ARO) |
| Capital improvement | - | Housing Department petition required |
| Utility pass-through | - | Approval needed for billing change |
| Itemization | - | Separate line on rent bill |
| Sunset | - | Ends at full amortization |
Highlighted rows indicate differences between cities.
Palo Alto FAQ
Can my landlord pass through a new roof or seismic retrofit cost?
Only by absorbing it within the AB-1482 annual cap. There is no separate capital improvement surcharge in unincorporated Santa Clara County, unlike rent-controlled San Jose or Mountain View units.
Can the landlord raise rent twice in one year?
No. AB-1482 limits owners to one rent increase per 12-month period, and the combined adjustment cannot exceed 5 percent plus regional CPI, never above 10 percent total.
San Jose FAQ
Can my San Jose landlord raise base rent for a new roof?
No. At Apartment Rent Ordinance buildings, capital costs are recovered only through a separately itemized surcharge approved by the Housing Department, never by adding the cost permanently into the base rent.
Do pass-throughs ever end?
Yes. Capital improvement and debt service surcharges sunset when fully amortized. Utility pass-throughs persist only while the underlying billing arrangement they correct remains in effect under the rent ordinance.
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